Lower of Cost and Net Realizable Value}

The accountant for Lahore Company prepared the following analysis of its inventory at yearend.

\section*{Required:}
1. Compute the carrying value of the ending inventory using the lower of cost and net realizable value method applied on an item-by-item basis.
2. Prepare the journal entry required to value the inventory at lower of cost and net realizable value.
\section*{Cornerstone Exercise

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Item Units Cost per Unit Net Realizable Value RSK-89013 500 $36 $44 LKW-91247 329 49 41 QEC-57429 462 29 33